After days of uncertainty and losses, the the coin market started showing signs of recovery of Tuesday, with most of the top crypto coins making gains.
The bleeding coin market has shown signs of recovery on Tuesday with Bitcoin trading above $36,000. Bitcoin fell below $33,000 on January 22, 2022. Its lowest value since July 2021.
The bearish trend that the coin market has followed since November has once again raised issues on its suitability as a store of value. At its present price, anyone that bought the cryptocurrency in November has lost half of their money in a little more than a month.
Anyone who bought #Bitcoin in November has lost over half of their money. What a great store of value!
— Mr. Whale (@CryptoWhale) January 25, 2022
However, the market is showing signs of reversal even though it is not yet clear how sustainable the changing trend is going to be. At the time of filing this report, BTC was trading at $36,392 according to data available from Coinmarketcap. At Bitstamp, the coin traded at $36,202 making a modest gain of 8.53% in the past 24 hours.
Technical Indicator: RSI in Oversold Region
Technical indicators also show that the coin market may be gearing for a reversal with the BTC/USD RSI indicator chart showing that the coin has been oversold at at RSI value of 18. This is a very oversold region and it is likely that the market would have many investors willing to support the coin above the $32.950 support.
As expected, a recovering BTC market would have a major impact on the general coin market with the premier crypto at a dominance of 42.2%, followed by Ethereum with a dominance of 17.5%.
Other coins that are in the green region include Ethereum, which has gained 9.56% in the past 7days, up 9.54% in the past 24 hours. Binance Coin (BNB) has gained 8.25%, while Cardano (ADA) gained 3.06%.
Other gainers are Solana (9.43%), XRP (5.92%), Dogecoin (7.07%), Polkadot (12.36%) and Avalanche (AVAX) 14.59%.
A Few Losers
With the coin market generally in green, just a handful of coins are still in red. Whitecoin (XWC) and Toncoin are down by 1.46% and 0.04% respectively.
The question that most investors would like to know is if the coin market has actually bottomed. It is difficult to say, but what is obvious is that the support is strong enough and the market willing enough to support it.
So which coins should the investor target at this point? In any case, BTC, SHINJI and STEP are gaining more investor attention.